TE Study Guide - Basic Examination
Concepts and Guidelines (1.1)
Questions and Answers 100% Pass
Rationale of Bank Exams - Why does the FDIC conduct bank exams? -
ANSWER✔✔-- Ensure public confidence in banking system
- Protect DIF
Rationale of Bank Exams - What do onsite exams do to help ensure stability
of banks? - ANSWER✔✔-- Identify undue risks and weak risk
management practices
- Evaluate adherence to laws and regulations which is given high priority
by Congress and bank supervisors
Rationale of Bank Exams - Exams play a key role in the supervisory process
by helping the FDIC identify? - ANSWER✔✔-- The cause and severity of
problems at individual banks
- Emerging risks in the financial services industry
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,- Helps FDIC develop effective corrective measures.
Conduct of Exams - Do regulatory personnel have access to all records and
employees of the bank during the exam? - ANSWER✔✔-Yes.
Conduct of Exams - Section 10(b) and (c) of the FDI Act empower
examiners to make thorough exam of the bank? - ANSWER✔✔-True
Conduct of Exams - Should FDIC employees avoid any form of political
communication with the bank that could be perceived as suggesting the
exam process is influenced by political considerations or that the bank
should take a particular position on legislative issues? - ANSWER✔✔-Yes,
FDIC should maintain integrity and effectiveness of exam process.
Rating System - UFIRS stands for what? - ANSWER✔✔-Uniform Financial
Institution Rating System
Rating System - What does the UFIRS do? - ANSWER✔✔-- Assists
regulatory agencies in fulfilling mission of maintaining stability and public
confidence in financial system.
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, - Ensures banks are evaluated in a comprehensive and uniform manner,
and that supervisory attention is appropriately focused on banks with
financial and operational weaknesses.
- Assists Congress in assessing the aggregate strength of financial industry
and follow trends.
Rating System - Can the composite rating be derived from averaging
component ratings? - ANSWER✔✔-No, but the composite rating generally
bears a close a relationship to its component ratings.
Rating System - What component should be given special consideration
when assigning a composite rating? Why? - ANSWER✔✔-Management.
Shows the ability to respond to changing circumstances and address risks
that result from new business conditions, activities, and products.
Rating System - What are the six specialty exam areas? - ANSWER✔✔--
BSA
- IT
- Trust
- Government Security Dealers
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Concepts and Guidelines (1.1)
Questions and Answers 100% Pass
Rationale of Bank Exams - Why does the FDIC conduct bank exams? -
ANSWER✔✔-- Ensure public confidence in banking system
- Protect DIF
Rationale of Bank Exams - What do onsite exams do to help ensure stability
of banks? - ANSWER✔✔-- Identify undue risks and weak risk
management practices
- Evaluate adherence to laws and regulations which is given high priority
by Congress and bank supervisors
Rationale of Bank Exams - Exams play a key role in the supervisory process
by helping the FDIC identify? - ANSWER✔✔-- The cause and severity of
problems at individual banks
- Emerging risks in the financial services industry
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/16
,- Helps FDIC develop effective corrective measures.
Conduct of Exams - Do regulatory personnel have access to all records and
employees of the bank during the exam? - ANSWER✔✔-Yes.
Conduct of Exams - Section 10(b) and (c) of the FDI Act empower
examiners to make thorough exam of the bank? - ANSWER✔✔-True
Conduct of Exams - Should FDIC employees avoid any form of political
communication with the bank that could be perceived as suggesting the
exam process is influenced by political considerations or that the bank
should take a particular position on legislative issues? - ANSWER✔✔-Yes,
FDIC should maintain integrity and effectiveness of exam process.
Rating System - UFIRS stands for what? - ANSWER✔✔-Uniform Financial
Institution Rating System
Rating System - What does the UFIRS do? - ANSWER✔✔-- Assists
regulatory agencies in fulfilling mission of maintaining stability and public
confidence in financial system.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/16
, - Ensures banks are evaluated in a comprehensive and uniform manner,
and that supervisory attention is appropriately focused on banks with
financial and operational weaknesses.
- Assists Congress in assessing the aggregate strength of financial industry
and follow trends.
Rating System - Can the composite rating be derived from averaging
component ratings? - ANSWER✔✔-No, but the composite rating generally
bears a close a relationship to its component ratings.
Rating System - What component should be given special consideration
when assigning a composite rating? Why? - ANSWER✔✔-Management.
Shows the ability to respond to changing circumstances and address risks
that result from new business conditions, activities, and products.
Rating System - What are the six specialty exam areas? - ANSWER✔✔--
BSA
- IT
- Trust
- Government Security Dealers
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/16
